Porto (formerly Porto Seguro) closed the fourth quarter of 2022 with recurring net income of R$555.6 million, up 87.6% in one year, according to the balance sheet released this Thursday (9).
It was the company’s highest historical result for a quarter, driven by the recovery of margins and the expansion of business lines.
The company’s total revenue, which includes the different businesses, increased by 31.1% compared to the same period in 2021, to R$ 7.884 billion.
The insurance and health verticals were responsible for the growth, with increases of 26.7% and 35.1%, respectively, on the same basis of comparison.
In insurance, an area that has the greatest weight in the company’s results, Porto highlights that the increase in auto insurance premiums, of 30.7%, was the main driver in the annual comparison, with the acceleration of sales in certain regions of the country and also by the readjustments in the prices of the policies. The premium written in insurance as a whole was R$ 6.279 billion.
Last year, with inflation in the prices of used cars, which guide compensation payments, Porto made adjustments to its policies, which ended up being followed by the market. This led to a dilution of risks, which caused the loss ratio to fall to 58.3% in the auto, compared to 63.1% in the same period of 2021.
“In addition, after a period of strong increases in the prices of the cars that make up our insured fleet, we observe a more favorable trend from the end of the first half of 2022, reducing the pressure on indemnified amounts”, says the company in the balance sheet. The fleet insured by Porto was 5.7 million vehicles, down 1.7% in one year.
In health, Porto had revenue of BRL 903.3 million, with a base of 413 thousand beneficiaries, 18% higher than in December 2021. The company highlighted that the lowest growth in three months, in which there was stability, resulted in the non-renewal of two business accounts with a high loss ratio, with around 13,000 lives added.
Porto Seguro Bank, in turn, had revenues of R$1.2 billion, up 21.1% in one year, with a return on equity (ROE) of 42.3%. The credit portfolio totaled R$ 16.180 billion, up 21.5%, and defaults over 90 days, 7.1%, up 1.5 percentage points in one year. The cost of risk was 60%, 4 points above 2021, and coverage was 118%, 1 point below.
Considering all verticals, Porto ended the fourth quarter of 2022 with a profitability of 21.6%, a drop of 1.5 percentage points in a year, but an increase of 10.3 points in three months.
Source: CNN Brasil
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